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Which of the following financial securities is expected to carry the lowest yield? A) 30-year U.S....

Which of the following financial securities is expected to carry the lowest yield? A) 30-year U.S. treasury bond. C) 10-year Bonds issued by Apple. B) 1-year U.S. Treasury-bill. D) 10-year U.K. treasury bond.

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Answer #1

Treasury bills issued by US is the most risk free asset in the world as the dollar is the reserve currency and US is considered the best example of a sovereign government. Among the financial securities issued by US government, the treasury bill having the lowest maturity would be having the lowest yield as the higher maturity bonds would have the maturity risk premium

So the answer is  B) 1-year U.S. Treasury-bill

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